I not sure you quite understood the details of my explanation. The two options I was questioning were: 1) Have the sales price be $280K, I pay the $46K assessment as a separate transaction or 2) I pay the seller $326K (which would be my basis in the condo) and the seller would pay the $46K assessment, which is technically his responsibility to begin with. My question was to the effect that if we do 2) and have the seller's assessment of $46K paid at closing as part of the seller's closing costs, would the seller then be able to use his net return after closing (<$280K) to determine his capital gain from the sale? I think the answer to that question has been established as "No".
From other TurboTax expert answers, I think the key issue is whether or not the assessment is considered for maintenance/repairs or improvements/upgrades. If the answer is for improvements, the $46K would count as an increase in basis for whomever pays it. If for repairs, it would not. Treating the $46K as a closing cost wouldn't help one way or the other. With answers like yours and especially SweetieJean's and TaxGuyBill's, I know what can and can't be achieved at closing. Thanks so much for your time and thoughts on this matter.
